Bloomberg (May 7)
Greece’s election “raised the risk that the nation will exit the euro and prompted calls for policies to boost European economic growth.” The likelihood that Greece will quit the euro in the next 12-18 months has risen to 50%-75% according to Citigroup Inc. economists Guillaume Menuet and Juergen Michels.
Greece’s election “raised the risk that the nation will exit the euro and prompted calls for policies to boost European economic growth.” The likelihood that Greece will quit the euro in the next 12-18 months has risen to 50%-75% according to Citigroup Inc. economists Guillaume Menuet and Juergen Michels.
Tags: Ecoonomists, euro, Exit, Greece, Risk
Investment Week (January 26, 2012)Investment Week (January 26, 2012)
“The euro needs to see a sharp fall of at least 30%, bringing it into line with the US dollar, or else the eurozone is ‘doomed.’” That warning came from economist Nouriel Roubini. He believes a major drop in the currency is the only way to “restore stability and competitiveness” in Europe.
Investment Week (January 26, 2012)
“The euro needs to see a sharp fall of at least 30%, bringing it into line with the US dollar, or else the eurozone is ‘doomed.’” That warning came from economist Nouriel Roubini. He believes a major drop in the currency is the only way to “restore stability and competitiveness” in Europe.
Guardian (January 25, 2012)
“The euro fell sharply on the foreign exchanges today after the legendary speculator George Soros said that growing economic and political tensions could destroy the European Union.” At the World Economic Forum in Davos, other economists have added their voices to his warnings. Soro’s said, “Unfortunately, the European authorities had little understanding of how financial markets really work, and did everything wrong.” He pointed out that Greece is now on the verge of default.
New York Times (December 6)
The latest Merkozy solution demanding Euro nations work to balance budgets or face sanctions is “the wrong fix…. The Franco-German recipe will exacerbate Europe’s fundamental problem: lack of growth.”
Financial Times (September 19)
“There are no examples of lasting currency unions that are not ultimately backed by a political union.” The EU papered over this and other shortcomings in hopes that the economic benefits of monetary integration would lead to popular support. Instead national identities remain “much stronger than any common European loyalty.” This hinders leaders from extending decisive support to solve the eurozone’s problems, making clear “the limits to European solidarity.”
Tags: Currency, EU, euro, Loyalty, Solidarity
The New York Times (September 12)
Nobel Prize winning economist Paul Krugman believes “the euro is now at risk of collapse.” He warns that “we’re not talking about a crisis that will unfold over a year or two; this thing could come apart in a matter of days. And if it does, the whole world will suffer.” To avoid “an impeccable disaster,” Krugman believes the European Central Bank (ECB) must “lend freely and cut rates.” In addition, the ECB should be “buying up Spanish and Italian debt — that is, doing what these countries would be doing for themselves if they still had their own currencies.”
Financial Times (June 22)
“Bond investors are already pricing Greece’s government debt as though it has defaulted.” The Financial Times presents the four scenarios most likely to play out in the ongoing Greek saga: Disorderly default, Orderly default, Staggering on and Leaving the euro. None of them are pretty and the actual course will likely be revealed in the next few weeks.
“Bond investors are already pricing Greece’s government debt as though it has defaulted.” The Financial Times presents the four scenarios most likely to play out in the ongoing Greek saga: Disorderly default, Orderly default, Staggering on and Leaving the euro. None of them are pretty and the actual course will likely be revealed in the next few weeks.
New York Times (December 5)
Alistair Darling writes that European leaders need to “address the root causes” behind the ongoing European crisis. “It is not enough for the euro zone nations to bail out each economy as it falls into a crisis—they must address the root causes of the continent’s problems.” The Former British Chancellor of the Exchequer (2007–2010) and current member of British Parliament identifies the root cause as the limited “political and economic union that underpins” the common currency. As a first step, Darling recommends that the European Central Bank “make a firm commitment to buying government bonds from at-risk countries.” Darling provides other suggestions and urges European leaders to act quickly to address what has become “the single largest threat to the fragile global recovery.”
Alistair Darling writes that European leaders need to “address the root causes” behind the ongoing European crisis. “It is not enough for the euro zone nations to bail out each economy as it falls into a crisis—they must address the root causes of the continent’s problems.” The Former British Chancellor of the Exchequer (2007–2010) and current member of British Parliament identifies the root cause as the limited “political and economic union that underpins” the common currency. As a first step, Darling recommends that the European Central Bank “make a firm commitment to buying government bonds from at-risk countries.” Darling provides other suggestions and urges European leaders to act quickly to address what has become “the single largest threat to the fragile global recovery.”
Tags: Alistair Darling, Currency crisis, euro, Euro zone
Economist (December 2)
The euro is lurching from crisis to crisis. The Economist hopes the currency will survive. European leaders should be doing more. “Breaking up the euro is not unthinkable, just very costly. Because they refuse to face up to the possibility that it might happen, Europe’s leaders are failing to take the measures necessary to avert it.”
Tags: Currency crisis, euro, European leaders
Institutional Investor (September Issue)
Four months ago, a sovereign-debt crisis threatened the euro. Today, there is “growing confidence that the region has pulled itself back from the brink.” Institutional Investor points out “crisis eased is far from crisis resolved.” Though the outcome has been better than expected, the euro region still lacks consensus on a mechanism to avoid a future crisis. “The debt crisis has yet to spark the life-altering transformation that the euro area needs.”
Tags: Crisis, euro, Sovereign debt
